THE IMPACT OF EARNINGS MANAGEMENT ON CAPITAL MARKETS: ETHICAL CONSIDERATION OF THE PLAYERS by ProQuest

VIEWS: 15 PAGES: 8

This research investigates the post market effects created by the various earnings management schemes perpetrated from 1995 through 2002. The study compares stock price movement trends of 30 companies with the movement of the three major stock price indices; the DOW, NASDAQ, and S & P 500. The comparison was made over a six year time frame, January 1, 2001 to January 1, 2007. The research has an emphasis point of April 1, 2002, which was the approximate date of the culmination of media announcements involving reported earnings management schemes of the culprit companies. The study indicates that approximately 43% of the companies sampled were engaged in some kind of earnings management scheme during this period of time. The paper concludes with a summary of ethics reforms currently underway by the players involved in the free market system to correct the economic anomalies created as a result of earnings management schemes. [PUBLICATION ABSTRACT]

More Info
To top